Servátka, Maroš; Tucker, Steven; Vadovic, Radovan - Department of Economics and Finance, College of … - 2008
While most of the previous literature interprets trust as an action, we adopt a view that trust is represented by a …. In this paper we propose and test a conjecture that economic agents use trust strategically. That is, the agents have … incentives to inflate the perceived level of trust (the signal) in order to induce a more favorable outcome for themselves. In …